On-demand delivery startup Glovo picks up two acquisitions
Spanish delivery startup Glovo has announced the acquisition of Lola Market and Mercadão
Spanish on-demand delivery startup Glovo has announced the acquisition of two grocery delivery companies, Lola Market and Mercadão.
The acquisitions, described as a reflection of how consumer habits are changing and redefining the delivery industry, are a key part of Glovo’s expansion plans to position itself as the primary on-demand partner for retailers.
Both Lola Market and Mercadão already operate in the on-demand delivery space, connecting supermarkets and local independent stores with customers. Lola Market operates in Spain while Mercadão is exclusive to Portugal; the two companies have a combined portfolio of over 30 partners across the two countries.
Rapid growth
Barcelona-based Glovo was founded in 2015 and has 3.7 million active users, operates in 23 countries and has successfully delivered over 255 million orders. The on-demand service connects users with restaurants, supermarkets, pharmacies and retail stores to order anything they want.
The acquisitions follow a €450m Series F funding round that was completed in April this year and recorded as one of Spain’s biggest startup funding rounds. As part of the funding, Glovo announced it plans to invest the capital into its q-commerce operations and expand into new territories.
Expansion in a crowded market
Glovo is keen to remain competitive in a crowded market, and it’s easy to understand why – recent Covid-19 restrictions have shifted consumer spending habits, steering many to rely heavily on on-demand food delivery services and retailers. The industry is anticipated to rise at a considerable rate during 2021 to 2027, according to MarketWatch.
But the market is already crowded: Turkey’s on-demand delivery platform Getir, now valued at $7.5bn following a $555m Series D round in June, has already expanded to European markets such as London, Amsterdam, Berlin and Paris. London-based Zapp closed a $100m Series A round in March and plans to expand aggressively over the next few months, taking advantage of the demand for rapid delivery services.
The acquisitions will further complement Glovo’s growth strategy and strengthen its q-commerce division, which is on track to hit an annual Gross Transaction Value of more than €300m this year and expects it to triple by the end of 2022, surpassing a run rate of €1bn.
It also follows the recent acquisitions of rival Delivery Hero’s brands in Eastern Europe as well as plans to scale its operations in Africa.
Oscar Pierre, CEO and co-founder of Glovo, said: “These acquisitions represent a significant step forward for us, as we’re now able to cover all of the main purchasing considerations for groceries customers, making Glovo a one-stop-shop for e-groceries.”
Financial terms of the deals have not been disclosed.
